I would like to begin by tell you about The word credit is derived from the Latin word Credo. The word credo means "I trust you". Credit gives you the ability to buy things you cannot afford to pay for all at once, and you can also use it for convenience. You must eventually pay the money back, and most credit purchases incur interest charges in addition to the original amount.
Credit card it the money that is loaned to you with the understanding that the money will be re-paid.
I see college students always being a prime target for credit card companies. College students see all these credit card signs and want to apply. So when the credit card companies come on campus they attempt to get first time card holders. These credit card companies use free gifts to lure the college students in. The students then fill out applications and get approved for over a thousand dollars on the spending limits.
According to a 2005 report done by Nellie Mae about seventy-eight percent of undergraduate students between the ages of eighteen and twenty-five are holding credit cards. Also, According to the Center for Responsible Lending, people in the 18-24 ages spend nearly 30% of their monthly income on debt repayment alone.
In a 2008 article, “The Truth about Teens and Credit Cards” by financial writer Dave Ramsey, he stated that teens are the number one target for credit card companies.
What makes these figures so alarming is that while the cost of tuition continues to rise, 7.2% of students drop out of college due to debt and/or financial pressures. (Student Research on Credit Literacy, 2009) This is 1.9% more than the number of students who drop out due to academic failure. Also, because Seven to ten percent of college students drop out of school because of credit card problems
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Most students like and want to have credit cards because they think this money is free for them, but they do not think about the prepayment that they have to do.
Most students...